This paper analyzes the workings of liability when harm-inflicting consumers are present biased and both product safety … the manufacturer, in stark contrast with the baseline scenario in which strict consumer liability induces socially optimal … product safety and precaution levels. In addition, we establish that strict liability with contributory negligence may induce …

. Consumers, of course, would have to be put on notice, perhaps through a labeling system, that they are assuming liability for …

organization, provide insight into an important area of law: products liability (that is, liability for harms and losses associated … with goods and services sold via markets). Remarkably, traditional law and economics (L&E) analyses of products liability … generally find no role for the influence of market structure or strategic interaction on liability policy. After briefly …

liability for accident losses and invests efficiently. When the consumer's net benefit function is increasing in consumer type …, the firm contractually disclaims liability and under-invests. Legal interventions, including products liability and limits …